October USPAP Q&A's

The Appraisal Standards Board (ASB) has released the October, 2008 Questions and Answers document. Main topics for this edition of the ASB USPAP Q&A include:

• Adequacy of Workfile Documentation

• USPAP Applicability in Valuation for Financial Reporting

• Assignment Involving Analysis of Leases

Out of the three, the workfile documentation is the most pertinent for the personal property appraiser.

The Q&A states:

Question: In the course of preparing my appraisals, I often research Multiple Listing Service (MLS) and other data sources. I use this information to develop conclusions regarding neighborhood value ranges and market trends. Is it necessary for me to include copies of this information in my workfile? Alternatively, can I simply reference the data sources in my workfile?

Response: References in the workfile to the location of documentation used to support an appraiser’s analyses, opinions, and conclusions can be adequate. It is not always necessary for the appraisal workfile to include all the documentation provided the referenced material is retrievable by the appraiser throughout the workfile retention period. Care should be exercised in the selection of the format and location of documentation. The Record Keeping section of the ETHICS RULE states that the workfile must include: …all other data, information, and documentation necessary to support the appraiser’s opinions and conclusions and to show compliance with this Rule and all other applicable Standards, or references to the location(s) of such other documentation. (Bold added for emphasis.)

To read the October USPAP Q&A's click HERE.